EEA vs VEA: Correlation
The European Equity Fund, Inc. (EEA) and Vanguard FTSE Developed Markets ETF (VEA) show a very strong relationship: their 3-year correlation of weekly returns is 0.81.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEA and VEA?
Across a 3-year window, the weekly returns of EEA and VEA correlate at 0.81, very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.80) sits close to the 3-year figure. Stretching to 5 years gives 0.83, with an annualized covariance of 189.0 %².
VEA is one of the assets that tracks EEA most closely: it ranks #3 out of the 14 assets we track against EEA. Their recent paths diverged sharply: over the last 12 months VEA outperformed by 16.8 percentage points (+11.7% for EEA against +28.5% for VEA).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
EEA vs VEA: side by side
| EEA (The European Equity Fund, Inc.) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +11.7% | +28.5% |
| 5-year return | +34.8% | +63.5% |
| Volatility (ann.) | 15.4% | 15.1% |
| Beta vs S&P 500 | 0.61 | 0.79 |
| Max drawdown (3Y) | -14.1% | -13.5% |
| Market cap | $0.1B | – |
| P/E (trailing) | 4.2 | – |
| Dividend yield | 6.92% | 2.56% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $314.9B |
| Sector / category | US Listed | ETF · International |
VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Year-by-year returns
| Year | EEA | VEA |
|---|---|---|
| 2022 | -19.0% | -15.3% |
| 2023 | +17.2% | +17.9% |
| 2024 | -3.5% | +3.1% |
| 2025 | +28.8% | +35.2% |
| 2026 | +13.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEA and VEA good diversifiers for each other?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between EEA and VEA?
As of 2026-08-27, the correlation of weekly returns between EEA and VEA is 0.81 over 3 years, 0.80 over 1 year and 0.83 over 5 years.
Is VEA a good diversifier for EEA?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.81 mean?
A reading of 0.81 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eea-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/eea-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EEA correlations · VEA correlations
